ISLAMABAD: The Federal Board of Revenue (FBR) has totally abolished Super Tax for exporters deriving income exceeding Rs 500 million after fulfilment of specified conditions.
According to income tax explanatory circular 2 of 2026 issued on Tuesday, the amendment signifies that super tax has been abolished for every person having income up to Rs. 500 million except the persons specified in the table. However, by introducing a new clause (104B) in Part IV of the Second Schedule, supertax has been totally abolished for exporters deriving income exceeding Rs 500 millionif the export proceeds realized for the tax year represent more than eighty percent of exporter’s total turnover for that year.
Further, the rate of super tax has been reduced from 10 percent to 8 percent where income of a person exceeds Rs. 500 million, other than the persons mentioned.
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A new sub-section (68) has been added in section 177 whereby the Commissioner, having regard to the nature and complexity of the accounts. their volume. doubts abouttheir correctness, multiplicity of transactions or the specialized nature of the taxpayer’s business, may - after affording the taxpayer a reasonable opportunity of being heardand with the previous approval of the Chief Commissioner - direct that the accountsbe re-audited by an accountant, the inventory re-valued by a cost accountant, or theactuarial values in the accounts be determined by an actuary, in each case from amongsta panel nominated by the Board. A mechanism has also been provided enabling the registered person to object to the nomination of a particular accountant or cost accountant.
In the proviso to clause (a) of sub-section (I) of section 182A, the amounts of surcharge payable by persons not appearing on the active taxpayers’ list have been substantially enhanced. A new sub-section (3) has been added providing that the conditions of payment of surcharge shall not apply to an individual who furnishes an undertaking before the Commissioner declaring that he shall not purchase, acquire or other wise obtain ownership or beneficial interest in any property for a period of six months commencing from the date of furnishing such undertaking, the FBR added.
Copyright Business Recorder, 2026